REG-BlackRock World Mng: Portfolio Update

BlackRock World Mining TrustAnnouncement

23/02/2021 12:30

The information contained in this release was correct as at 31 January 2021.
Information on the Company’s up to date net asset values can be found on the
London Stock Exchange Website at:

https://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.

BLACKROCK WORLD MINING TRUST PLC (LEI - LNFFPBEUZJBOSR6PW155)

All information is at 31 January 2021 and unaudited.
 

 Performance at month end with net income reinvested                                           
                                                                                               
                                                             One   Three    One  Three    Five 
                                                           Month  Months   Year  Years   Years 
 Net asset value                                           -0.1%   19.9%  38.7%  38.2%  246.0% 
 Share price                                                1.5%   33.7%  59.8%  58.8%  318.6% 
 MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)*   -2.5%   13.9%  25.0%  18.9%  193.1% 
                                                                                               
 * (Total return) Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream. 

At month end

 Net asset value (including income) (1):       533.20p 
 Net asset value (capital only):               524.34p 
 (1)Includes net revenue of 8.86p                      
 Share price:                                  530.00p 
 Discount to NAV (2):                             0.6% 
 Total assets:                               £1,047.3m 
 Net yield (3):                                   4.2% 
 Net gearing:                                    12.6% 
 Ordinary shares in issue:                 173,550,814 
 Ordinary shares held in Treasury:          19,461,028 
 Ongoing charges (4):                             1.0% 

(2) Discount to NAV including income.
(3) Based on three quarterly interim dividends of 4.00p per share declared on
12 November, 19 August and 30 April 2020 in respect of the year ended 31
December 2020 and a final dividend of 10.00p per share announced on 27
February 2020 in respect of the year ended 31 December 2019.
(4) Calculated as a percentage of average net assets and using expenses,
excluding finance costs, for the year ended 31 December 2019.
 

 Country Analysis          Total    Sector Analysis              Total  
                       Assets (%)                            Assets (%) 
                                                                        
 Global                      64.9   Diversified                    38.9 
 Australasia                  9.2   Gold                           24.7 
 Latin America                7.2   Copper                         18.5 
 South Africa                 5.5   Platinum Group Metals           3.1 
 Canada                       4.9   Iron                            3.0 
 United Kingdom               2.3   Nickel                          2.9 
 Indonesia                    1.7   Iron Ore                        2.7 
 Other Africa                 1.5   Steel                           2.3 
 United States                1.3   Industrial Minerals             2.0 
 Russia                       1.0   Materials                       0.8 
 Net Current Assets           0.5   Silver & Diamonds               0.3 
                            -----   Zinc                            0.2 
                            100.0   Aluminium                       0.1 
                            =====   Net Current Assets              0.5 
                                                                  ----- 
                                                                  100.0 
                                                                  ===== 

   

 Ten largest investments                  
                                          
 Company                   Total Assets % 
                                          
 Vale:                                    
 Equity                               6.5 
 Debenture                            4.9 
 BHP                                  8.0 
 Anglo American                       7.1 
 Rio Tinto                            6.2 
 Freeport-McMoRan                     5.3 
 Newmont Mining                       4.4 
 Barrick Gold                         4.0 
 Glencore                             4.0 
 OZ Minerals:                             
 Royalty                              2.1 
 Equity                               1.3 
 Wheaton Precious Metals              3.2 
                                          

   

 Asset Analysis       Total Assets (%) 
                                       
 Equity                           93.5 
 Bonds                             3.8 
 Preferred Stock                   2.3 
 Option                           -0.1 
 Net Current Assets                0.5 
                                 ----- 
                                 100.0 
                                 ===== 

Commenting on the markets, Evy Hambro and Olivia Markham, representing the
Investment Manager noted:

Performance

The Company’s NAV returned -0.1% in January, outperforming its reference
index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return),
which returned -2.5% (Figures in GBP).

Despite much of the world remaining in a state of lockdown due to the
coronavirus pandemic, the year started with a flavour of optimism in global
equity markets as investors focused on the potential for a vaccine-driven
economic restart. This narrative was somewhat derailed towards the end of the
month as it became clear that there was divergence in the vaccine rollout in
different countries. Against this backdrop, the MSCI AC World Index fell by
0.6%.

January was a mixed month for the mining sector, having started the period
strongly before pulling back. US 10-year treasury yields rose over the month,
contributing to US dollar strength which acted as a headwind for commodities.
Meanwhile, tougher COVID-19 related restrictions in China stoked concern
around economic activity in the country and, in turn, its commodity demand.

Mined commodity performance was varied, with iron ore (62% fe) and gold prices
down by 0.9% and 2.1% respectively but the copper price up by 1.5%. Turning to
the companies, 2020 production results were announced during the month and, in
general, they were in line with expectations, with relatively limited COVID-19
related disruptions. Investors are now looking ahead to the February earnings
reporting season in which we are expecting to see strong financial results and
continued focus on returning capital to shareholders.

Strategy and Outlook

We are optimistic on COVID-19 vaccine rollouts supporting global economic
growth and, in turn, commodity demand. Meanwhile, our analysis shows that the
mining sector has performed particularly strongly during periods with
significant increases in inflation expectations, which we believe we could see
this year.

Increased fiscal stimulus globally aimed at kickstarting economies in the
COVID-19 crisis is being geared towards infrastructure spending which should
support mined commodity demand. Meanwhile, we see the mining sector playing a
crucial role in supplying the materials required for low carbon technologies
e.g. wind turbines and solar panels.

Capital expenditure has been slashed by the miners since the peak in 2013
which is constraining new commodity supply and supporting prices. Whilst
capital expenditure has risen since 2016, it is still a long way below the
peak and we are encouraged by rhetoric from management teams around continued
capital discipline.

Mining companies have focused on paying down debt in recent years and balance
sheets are exceptionally strong today as a result. Given ongoing discipline,
capital is being returned to shareholders in the form of dividends and
buybacks. Meanwhile, we see potential for dividend upside given that prices
for mined commodities have surprised to the upside e.g. iron ore.

All data points are in USD terms unless stated otherwise.

23 February 2021

Latest information is available by typing www.blackrock.com/uk/brwm on the
internet. Neither the contents of the Manager’s website nor the contents of
any website accessible from hyperlinks on the Manager’s website (or any
other website) is incorporated into, or forms part of, this announcement.



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